Long-term financial targets
In April 2023, Nokian Tyres published the following updated long-term financial targets for the next five years:
- Growth: Net sales EUR 2 billion
- Profitability: Segments operating profit at the level of 15%
- Capital structure: Net debt/Segments EBITDA 1–2
Dividend policy: Nokian Tyres’ target is to pay a dividend of at least 50% of its net earnings.
Growth
Target: EUR 2 billion in net sales
Development: In 2023, net sales were EUR 1,173.6 million and decreased by 9.2% with comparable currencies. The decrease was due to lower passenger car tire supply volumes, demanding car and tire market environment and high inventories in the distribution.
Profitability
Target: Segments operating profit ~15%
Development: In 2023, segments operating profit was EUR 65.1 million and segments operating profit margin 5.5%.
Capital structure
Target: Net debt to Segments EBITDA ratio 1-2
Development: In 2023, net debt to segments EBITDA ratio was 1.3.
Non-financial targets
Nokian Tyres non-financial targets focus on bringing new environmental and safety innovations to products, reducing CO₂ emissions in line with the Science Based Targets, further improving workplace safety, monitoring the sustainability of suppliers, and developing personnel wellbeing.
Nokian Tyres will, for example:
- Increase the share of recycled or renewable raw materials in tires to 50% by 2030
- Reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030 from 2022 base year
- Achieve net-zero greenhouse gas emission level by 2050 in line with the Net-Zero Standard of the Science Based Targets initiative
- Decrease accident frequency (LTIF) from 8.3 (2018) to 1.5 by 2025
- Audit 100% of significant high-risk suppliers by 2025
- Develop personnel wellbeing